Kingfish has a long post (involving extensive reporting he’s done) involving a Madison County mortgage fraud case against two lawyers, Jon and Charles Evans. One owned a series of LLCs holding real estate, and the other issued title certificates and obtained Mississippi Valley Title insurance for bank loans on the property. The key word here is “loans”– lots and lots of loans– as in multiple first deeds of trust on the same property at once with different banks. And this apparently involved millions and millions of dollars.
Mississippi Valley Title has filed suit against the Evans. The whole picture is not in view– an affidavit with the nuts and bolts of the scheme is under seal, as is the temporary restraining order. But Kingfish has done a fair amount of digging and this is worth reading.
This is one of several mortgage fraud cases in all parts of the state that I’ve been hearing and reading about.
One question is what is MVT’s liability here if these guys are guilty of fraud? They used about every small bank in the state.
Those of us not practicing in this field may, like me, be a little unclear on the relationship b/t Charles Evans and MVT. He was “certified” by them? What does that mean? Can whatever he does be imputed to them?
As I understand it, MVT restricts the number of lawyers who may issue such title certificates for them —its a rather small, exclusive club of sorts (think GOBs). It is hard for me to fathom that someone at MVT should not have noticed these irregularites (nice way to characterize the repeated fraud) before that much money was involved. Sounds like some folks were asleep at the switch. I think MVT will be on the hook, despite the fraud of their attorney. MVT’s recourse will be to try to recover against their attorney.
Ah so. Thanks!
NMC, is this the same kind of thing involving a certain lawyer in Booneville with the initials T.K.?
I’m hearing there’s a similar issue in Booneville, OWIL.
Am hearing this same group did something similar in Desoto.
there is no question MVT is on the hook to the banks. the attorney not only closes the deal but is paid a commission on the title insurance as a agent for MVT. there is also a statute declaring anyone who sells insurance an agent. think banks selling credit life
I thought you had to fill out a form and show proof of E&O insurance to be an approved attorney. The more people selling, the better. Wonder if Evans had E&O insurance? Probably is so small a policy it is a moot point.
Multiple first D/Ts on the same property?? What? … did they think no one would notice? Our bar is one helluva mess.
Six (6) ops today in whether a Mr. Doss should be executed; the upshot is a new sentencing trial.
A wee bit of Graves-Lamar testiness — they’re rolling back in part her previous op in the matter, on rehearing. Big win for Rob McDuff.
(News not so good for Gene Tullos. Worth looking at for Tullophobes and for those keeping track on just how a 12(b)(6) motion becomes a Rule 56 motion when you staple stuff to it.)
I wonder if Ed Peters was anywhere near the Tullos case the first time around?
Somslawyer: You can’t assume that he wasn’t. Our bar needs a major rat-stabbing.
Yes, as SoMs implies, DeLaughter was the trial judge. I wonder if those automatically go into the “heightened scrutiny” file at the court.
Tullosphobes. Hilarious.
I’m trying to understand this fraud. The perpetrators had to know they’d be found out, and found out relatively soon. Is it some kind of Ponzi scheme? Were they planning to cut and run, or did they think the property would appreciate so exponentially they would be able to pay everyone off?….?
meanderline, it’s a Ponzi scheme, and has the classic characteristic– any rational person will say: What were they thinking?
My understanding of these frauds is they have to be understood as having a crossing-the-Rubicon moment– there’s a moment where the fraudsters start committing fraud, and there’s no turning back. At the time, it may seem a small moment that could be reversed, but while the fraudsters are thinking “we’ll just pay this back,” they start living off the wonderful cashflow, paying back just enough to keep the balls in the air for a short time, and…
the end is near.
Just think ponzi scheme with lenders instead of investors.
By the way, supposedly no one can find these guys. This went on for five years. This could’ve been planned all along.
IF it is fraud of course.
Wouldn’t they need some help from a county official or deputy clerk to not notice all these deeds being recorded on the same properties?
Researcher, the chancery clerk would just file the deeds of trust, one after the other. I would not expect them to notice except possibly (but not likely) at the “that’s odd” level– there’s nothing about the filing system that would draw their attention to it, or require they notice.